Online Casino News and Information

Zynga games, yes, the company responsible for all those popular Facebook games, wants to turn Zynga Poker into a real money gambling game. Zynga Poker is one of their most popular games and a spokesman told AllThingsDigital:

“We build games and experiences that our players want and love. Zynga Poker is the world’s largest online poker game with more than 7 million people playing every day and over 30 million each month.”

“We know from listening to our players that there’s an interest in the real money gambling market. We’re in active conversations with potential partners to better understand and explore this new opportunity.”

There overall plan is to combine their Zynga Poker and Zynga Bingo into Zynga Casino. Zynga will not be able to get into the online gambling market alone however and will have to partner with an operator able to get an online gambling license.

Some of the names being talked about as possible partners with Zynga is Bwin, which operates PartyGaming.com, Betfair, Bodog, Bet365 and 888.com.

Currently Zynga Poker says 7 million people play every day and 30 million play every month on their current “play” money site. There are hopes that on the business side, Zynga entering the online business may save their shrinking stock price sense there IPO.

Another possible scenario that may be coming from the U.S. Department of Justice reversal of opinion involving online gambling is multistate poker and Sen. Jeff Danielson, D-Cedar Falls believes Iowa can take full advantage.

Those in the Iowa legislature that want to have legalized online poker in Iowa are currently working on a new plan that may open the door to multi-state poker and possibly lead to agreements with Washington D.C., Nevada and some foreign countries to combine their poker efforts similar to the multi-state lottery system in place.

Sen. Danielson compares his proposal to the agreement Iowa has concerning Powerball and said, “We believe that because of the Department of Justice ruling, we can now have a multistate compact.” Though no timetable has officially been prepared, Danielson said he plans to draft a bill to legalize online poker soon and thinks it could be considered this session.

The Iowa Racing and Gaming Commission released their report last month that said it estimates that the rake from online poker games could be between $13 million to $60 million annually.  This would translate to an estimate $3 million to $13 million in potential annual tax revenue assuming same tax rate as current Iowa land based casinos.

Sen. William Dotzler, D-Waterloo would serve as the floor manager of the proposed bill and stated,

“I think the evidence is pretty clear that Iowans are already gambling online. We are losing a lot of revenue here in the state of Iowa”

Though there seems to be no big moves so far federally since the DoJ reversal of opinion on the wire act, some states like Nevada are moving fast to get an infrastructure in place to handle the wave on online gambling players.

So it only makes since that companies within the state of Nevada are getting in line as well to take advantage. Slot machine make International Game Technology (IGT), based in Nevada, is one of the companies. They have reached an agreement to purchase online gaming company Double Down Interactive.

IGT Chief Executive Officer Patti Hart said in a joint statement:

“The addition of Double Down launches IGT into a leadership position in social gaming, extends our global reach through new mediums and leverages our unmatched expertise in game development. We intend to drive meaningful value from this rapidly growing distribution platform that reaches a new but complementary demographic of gamers.”

Double Down Chief Executive Officer Greg Enell added about the possible $500 million deal:

“Double Down and IGT share complementary cultures focused on innovation and creativity. Both companies are committed to providing unrivaled quality, service and entertainment to millions of players.  Leveraging IGT’s research and development, global reach, and best-in-class content will provide our loyal player base with an even more robust experience and is expected to augment Double Down’s growth trajectory.”

The deal breaks down as $250 million in cash, $85 million in retention payments and an additional payout of $165 million over three years.

According to Mark Lipparelli, chairman of the Nevada Gaming Control Board, there is one question every state will be asking its Attorney General…”Tell us what this opinion means.” The opinion, of course, is the recent reversal by the Department of Justice and online gambling.

Now California, Illinois, Iowa, New York and New Jersey are other states are trying to get a piece of the estimated $4 billion that Americans spend every year on online gambling. Nevada, who has 70 years of gambling experience has already got pieces in place and is poised to jump in and take the lead in the U.S. online gambling industry.

No one knows what to expect when American’s start to gamble again full force online but the American Gaming Association has set a figure of $30 billion worldwide. It also figures that this would mean that online poker could generate up to $2 billion in tax revenue that could be collected by the states.

The ruling was heard “round the world” doesn’t automatically legalize online gambling across the United States. Each individual state still has to pass legislation outlining regulations and it is still unclear as to whether the DOJ means within a state’s borders or also include across state lines.

According to the American Gaming Association, the December ruling;

“…validates the urgent need for federal legislation to curb what will now be a proliferation of domestic and foreign, unlicensed and unregulated gaming websites without consistent regulatory standards and safeguards against fraud, underage gambling and money laundering.”

What’s in store for 2012 and online gambling? Most would say based on what happened previously that no one could really know what to expect. Calvin Ayre, founder of Bodog.com however thinks he may have the answer. In a press release earlier, here is his predictions for online gambling in 2012 according to Mr. Ayre.

1. AMERICA: Long before the US Department of Justice’s admission that the Wire Act didn’t extend beyond sports betting, I was on record as predicting no positive momentum for online gambling legislation at the federal level in 2012. Anyway, the recent DoJ announcement just underscores my long-held belief that it’s the states that make the gambling decisions in the US. I say it’s 50/50 that there will be one more state doing remote gambling in 2012, and even that one state may only offer online purchases of lottery tickets. But while progress will be slow, this state-by-state process that started in late 2010 with remote sports betting in Nevada will continue to spread over the coming decade.
2. EUROPE: I don’t expect much in the way of significant developments here. With faith in a common currency significantly shaken in 2011, the ongoing Balkanization of Europe’s gambling markets will only accelerate. Overall, this is a stale and mature market with an economy that will remain shaky for a long time to come. The smart companies (smart enough to have steered clear of public markets and shareholder meetings) will be shifting their focus toward…
3. ASIA: This market is still in its infancy, yet it’s already bigger than the rest of the world put together. Those who make a name in this region have yet to be determined, but one thing is for sure: public companies will not be among them.
4. LATIN AMERICA: The southern half of the western hemisphere will never rival Asia in terms of scale, but in gambling terms, it’s largely virgin territory, and probably represents the second best market to target in 2012.
5. INDIA: A massive market that always seems to get overlooked for some unexplained reason. Someone will figure out how to crack this market one day, and when they do… cha-ching.
6. CONVERGENCE SWINGS BOTH WAYS: In 2011, the focus was on land-based casino companies getting their digital feet wet. Going forward, I can see at least one major online brand laying a brick and mortar foundation in 2012. Someone is going to crack the integration code, overcoming the challenges of combining online and land-based gambling into one symbiotic business model. It’s my opinion that the guys best positioned to do this integration are the online companies that control their own technology and are not burdened by massive amounts of debt. Unlike online, land-based gaming is a natural fit for the public markets as you are subject to whatever regulations exist in the country in which you build, and you know you are never going to move a land-based casino.
7. MO’ MOBILE, MO’ OFTEN: patently obvious but mobile is still on a massive growth curve.
8. LIVE DEALER CASINO: Already massively popular in Asia, live dealer’s appeal will spread to other markets and into other forms, such as bingo. The technology has matured, and bottom line, it’s just more fun. Conversely, as live dealer casinos continue to excite, RNG casinos have grown stagnant due to a profound lack of innovation by the super-complacent companies that dominate this space. However, this stagnation means the road is wide open for some innovative company to make serious inroads.
9. SPORTS BETTING: The sector will continue to evolve slowly but vibrantly, with more betting types and increased integration with social media. Sports betting is the most complicated of all the channels and has the largest barriers to entry. This means that most of the innovation will come from existing industry players. Look for this to happen primarily in less regulated markets, though – as usual, player value is highest where the regulatory hurdles to experimentation and innovation are lowest.
10. BODOG RECREATIONAL POKER PLAYER MODEL: Though released in late 2011, its impact on the global online poker industry will remain the big poker story of 2012. I recently had a chat with Patrik Selin and Jonas Ödman, the two brains chiefly responsible for the rollout of the new ‘controversial’ Bodog Poker Model. These two have been developing this model for the past five or so years and the preliminary data they’re crunching tells them their theories are correct. The remaining features of their model, complete with a number of player-suggested improvements, will roll out over the first quarter of 2012.
11. OTHER POKER MODELS: Subscription poker and free-play virtual chip models will continue to grow, but their ability to convert players into risking real money will remain a major question mark.
12. HORSE RACING: The sport of kings is far from dead, but unless someone can find a way to attract a younger demographic to the track (in person or online), the knackers will continue sharpening their knives. Horseracing would benefit from some celebrity jockeys and an infusion of pop culture. The stuffy old top hat thing needs to be replaced with a hipper scene.
13. THIS SITE ROCKS AND YOU KNOW IT: CalvinAyre.com will be formally recognized as the largest and most comprehensive site covering the global online gaming market, but then I would say that.
14. WHO REALLY KNOWS?: Right this second, there’s some guy toiling away in obscurity on some project that will prove mind-blowingly good but which absolutely no one could have predicted (yet, like all truly great ideas, will seem completely obvious given the benefit of hindsight).

State Sen. Raymond Lesniak wants one more chance. On the heels of the U.S. Department of Justice clarification that in-state online gambling will not violate the current Wire Act, Lesniak is pushing for a bill legalizing online gambling in his state of New Jersey.

His goal is to have a bill on Governor Chris Christie’s desk as early as next week. He wants to New Jersey to take advantage of this new ruling quickly and become the national leader in online gambling. A feat that is also on the mind their nearest competitor, Nevada.

“We can be the Silicon Valley of Internet gaming,” said Lesniak, a Democrat from Elizabeth. “It’s the wave of the future. It’s going to come and we can be in the lead on it.”

This is not the first time New Jersey has had a bill on the desk of their Governor. The last one in March was vetoed by Christie. There are still a lot of questions about this push however as it is not clear if there is enough support in the Legislature to get this done and if there is, will it get vetoed again or not.

This bill is the same one Lesniak got through last time.

From losing processors, federal indictments and opinions reversed, it has been and interesting year in online gambling. Here is a list of what we think are the top ten stories of 2012.

10 – eWalletXpress Has Money Seized – Turns out that this was more than a rumor.

9 – eCogra Under New Management - eCogra is no longer owned by online gambling companies.

8 – Online Gambling in New Jersey Vetoed – There were many attempts by states to pass online gambling laws, this one came the closest.

7 – U.S. Goverment Seizes Three Major Online Poker Domains – These Federal indictments starts the last mass exodus out of the U.S. for U.S. facing online poker sites.

6 – QuickTender Payment Processor Discontinues Service – Another one bites the dust.

5 – Nevada Passes Online Gambling Bill – Looks like one state was thinking ahead.

4 – AGA Releases An Online Gambling Code of Conduct – The American Gaming Association reverses its opinion on online gambling and releases a code of conduct.

3 – SubCommittee to Look at Online Gambling in U.S. – U.S. Congress starting to take some action.

2 – Online Gambling Will Miss Barney Frank – A strong supporter will not run for another term.

1 – U.S. Department of Justice Reverses Stance on Online Gambling – Even though it is the most recent news, it stands as the best news of the year.

Merry Christmas U.S. online gambling!! Last week, right before the Christmas holiday was to begin, U.S. online gamblers got the best present of all. The Department of Justice had changed its stance and is now stating the Wire Act of 1961 only applies to sports betting.

Back in July, Senators Harry Reid and Jon Kyl as well as Illinois and New York ask the DoJ to clarify its position regarding online gambling and poker in regards to the Wire Act.  With this new official stance, states will now rush to take advantage with new lottery games as well as the possibility of using the same cross state tactics used for the major lottery games to allow online poker back into the United States.

According to the office of legal counsel for the Justice Department;

“We conclude that the Criminal Division’s premise is incorrect and that the Wire Act prohibits only the transmission of communications related to bets or wagers on sporting events or contests.”

Attorney General Ronald Weich said in a letter to Senate Majority Leader Harry Reid that;

“…in states that ban various forms of gambling–including Internet poker–the Department will be able to investigate and prosecute those gambling businesses under the Unlawful Internet Gambling Enforcement Act and other sections of the criminal code.”

With this new stance, even more pressure is on Congress to have legislation in place to regulate online gambling. This change in stance by the DoJ has cleared a path by which individual states can move forward on setting up their own offerings for online gambling.

The Poker Players Alliance released a press release where it’s executive director, John Pappas applauding the clarification and called for Congress to act now,

“This is a much needed clarification of an antiquated and often confusing law. For years, legal scholars and even the courts have debated whether the Wire Act applies to non-sporting activity. Today’s announcement validates the fact that Internet poker does not violate this law. The PPA commends Assistant Attorney General Seitz for recognizing this. However, this ruling makes it even more important that Congress act now to clarify federal law, and to create a licensing and regulation regime for Internet poker, coupled with clear laws and strong enforcement against other forms of gambling deemed to be illegal.”

To some this may be a case of “here we go again.” Nevada however is trying to position itself to be an important cog if the U.S. takes the leap and legalizes online gambling. As the debate is growing in Congress, Nevada voted to become the first state to allow online poker.

Thursday, Nevada approved rules that would allow companies to apply for licenses to operate a poker website in Nevada. Now, should Congress approve any of the regulations currently up for discussion, Nevada is now positioned to take quick advantage.

Nevada’s casinos, as long as the adhere to the state’s new standards, could be allow for them to have their own websites up with in the end of next year that could cater to Nevada residents only. According to Mark Lipparelli, chairman of the Nevada Gaming Control Board, the board that drew up the rules that was unanimously approved by the Nevada Gaming Commission;

“I think this is an important big step. This establishes a U.S. foundation for online gaming regulation.”

Nevada has directly addressed the issue of underage gambling that has been so hotly debated in many state governments. New operators must verify the age and location of every gambler within 30 days of registration and cannot extend credit.

There are also regulations directly coming from the DoJ issues with Full Tilt Poker.  Operators must also hold a reserve, either of cash or credit to cover the money held for players in their account and the regulations limit the profits that celebrity poker players could receive if employed by the site.

Thought the large casino companies are still lobbying for a federal law to legalize and regulate online gambling, Caesars has already applied for a Nevada online gambling license. It is still unclear whether they will take advantage of the new Nevada regulations or wait for federal legislation.

There has been a plea from one of the three online poker companies following last Aprils U.S. federal indictments. Brent Beckley, co-owner of Absolute Poker, pleaded guilty today in a Manhattan Federal court.

The charges were conspiracy to commit bank fraud and wire fraud as well as conspiracy to violate an Internet gambling law. All related to the deception of U.S. banks over processing online gambling proceeds. Sentencing is set for April 19 and according to his plea agreement, Beckley is looking at 12-18 months in prison.

Before his guilty plea, Beckley told Judge Ronald Ellis;

“I knew that it was illegal to accept credit cards from players to gamble on the Internet. I knew that it was illegal to deceive the banks in this way.”

All total 12 people have been charged when the indictments were handed down.  Beckley hired payment processors between 2008 and 2011 according to the indictment that were disguised as payroll processing, affiliate marketing and online electronic merchant checks to fool U.S. banks into excepting them.